Follow Us:

Share this:

State watchdogs blasted the New York Racing Association on Tuesday for promoting Ellen McClain to president before investigations conclude whether she may have known about the same misdeeds alleged about her predecessor.

“We believe these actions are entirely inappropriate, violate regulatory standards and
NYRA’s own by-laws, and neither the Racing and Wagering Board nor the Franchise Oversight Board recognize the validity of these appointments,” a letter to NYRA Chairman C. Steven Duncker says. The letter was signed by Robert Megna, chairman of the Franchise Oversight Board, and John Sabini, chairman of the Racing and Wagering Board.

It is response to NYRA announcing on Monday evening that it had made McClain successor to Charles Hayward and hired Kenneth Handal, as acting general counsel and chief ethics and compliance officer, and made him secretary. The actions came after NYRA let go President Charles Hayward and Counsel Patrick Kehoe amid an investigation by the Racing and Wagering Board. An interim report on the probe suggested Hayward and Kehoe were aware of NYRA violating racing law by overcharging bettors.

“As you know, there is an ongoing investigation surrounding the role ofNYRA executives
in knowingly authorizing an improper takeout rate,” the letter to Duncker says. “There are unanswered questions as to which executives – and potentially NYRA Board members – were aware of or participated in this misconduct. Since the role of Ms. McClain in the improper takeout as the Chief Operating Officer remains unclear, the Board’s action is entirely inappropriate.”

As punishment, the Division of Lottery is instructing Genting, the operators of the racino at Aqueduct, to withhold NYRA’s share of video lottery terminal betting and instead send those payments to a dedicated Lottery account.

About Capitol Confidential

Capitol Confidential gathers the best coverage of New York politics and puts it all together. Each section - Capitol, The State Worker, New York on the Potomac, and Voices - represents a unique facet of the political scene. The Capitol section features coverage from the Times Union Capitol bureau. The State Worker is dedicated to state worker issues. New York on the Potomac offers news of interest to New Yorkers from Washington. And Voices features the best of everything else, pointing you to columnists and bloggers from across the Web.